Audit Reports
Andhra Pradesh
Report of 2007 - Financial Audit on Urban Local Bodies and Panchayati Raj Institutions, Government of Andhra Pradesh
Overview
This Audit Report includes one performance review, one long paragraph and nine audit paragraphs on Urban Local Bodies (ULBs) apart from six audit paragraphs on Panchayat Raj Institutions (PRIs). It also contains observations on the structure and finances of PRIs and ULBs and the results of supplementary audit under the scheme of Technical Guidance and Supervision. Copies of the draft reviews and paragraphs were forwarded to the Government and the replies received have been duly incorporated in the Report.
Accounts and Finances of Local Bodies There was no system in place to consolidate the finances of PRIs. The creation of database on the finances of PRIs remained incomplete. Though the State Government stated that 10 functions had been devolved to PRIs, the transfer was only partial without corresponding transfer of funds and functionaries. The functioning of District Planning Committees was restricted to preparation of only Backward Region Grant Fund (BRGF) Action Plans. Andhra Pradesh Municipal Accounts Manual was adopted (August 2007) by the State Government and is being implemented only in 59 (out of 124) ULBs. The audit of local bodies by the Director, State Audit was in huge arrears in Gram Panchyats (GPs) and ULBs. Twelfth Finance Commission (TFC) grants were mis-utilised / diverted. State Finance Commission (SFC) recommendations were partially implemented.
Functioning of two Zilla Praja Parishads The Performance Audit of two ZPPs (Khammam and SPSR Nellore),out of 22 ZPPs in the State for the five year period from 2003-04 to 2007-08 revealed that although District Planning Committees (DPCs) were constituted in Khammam and SPSR Nellore, their functioning was deficient with regard to preparation of Action Plans. Properties were leased out without incorporating suitable clauses with regard to periodical revision of rent.Shortfalls in sectoral allocations as well as utilisation of ZPP General Funds were noticed. Proper monitoring and effective pursuance was not made in respect of collection of own revenues and also reimbursement of dues from the Government. There were cases of diversion of scheme funds, unfruitful expenditure and abandonment of works. The system of internal control and monitoring mechanism was also not effective as there were delays in preparation of Annual Accounts, preparation / submission of Annual Administrative Reports, non-reconciliation of departmental figures with pass books, shortfalls in departmental inspections.